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For more information,
please contact Linda Kelley at the office.
Now Accepting Secure Online Donations
Outright Gift Opportunities
Gifts
of Cash
Giving cash is popular
gifting due to its simplicity. Cash gifts may be
made by currency, check, money order or bank draft.
Your federal income tax deduction by donating to
Backstreet Missions (501c-3 organization) will reduce
the actual cost of the gift. See our
contact information for where to send it or donate
securely online now.
Gifts
of Stock
Gifts of marketable securities,
or stock listed on an exchange, can be advantageous
way to make a substantial contribution to support
Backstreet Missions. There is no taxation on the
gain of appreciated stock given directly to Backstreet
Missions. The fair market value on the date of the
stock gift is deductible for the income tax purposes.
Gifts of closely held
stock, or securities not traded on an exchange, may
also be accepted. However, such gifts should be discussed
with a professional prior to the time the gift is
made.
Gifts
of Real Estate
Gifts of real estate offer
great flexibility in planning. All proposed gifts
of real estate are reviewed by the board of directors
before the gift is accepted.
An outright gift of appreciated
land or other real estate has several immediate benefits
for the donor: there is no taxation on the appreciation
of the real property; an income tax deduction is
available for 100 percent of the fair market value
of the property as of the gift date; and your taxable
estate is reduced by the value of the gift less any
income tax savings that are retained or reinvested.
Gifts
of Personal Property
Gifts of personal property
require an independent appraisal of the fair market
value before the gift is made. Restrictions by the
donor regarding the sale, maintenance, administration,
and display of such gifts are possible, but subject
to review and approval by Backstreet Missions Board
of Directors. See our Thrift
Store page for drop-off and pickup information.
Planned or Deferred Gift Opportunities
Bequests
A bequest through a will
or trust is the most common form of planned gift.
A bequest allows you to make a substantial contribution
to support the mission without diminishing the assets
available to you during your lifetime. Because a
bequest to Backstreet Missions is tax deductible
for federal estate tax purposes, important estate
tax savings can result, and your federal estate tax
burden may be reduced or eliminated.
Life
Insurance
Gifts of life insurances
can offer an attractive way to benefit the mission
at a relatively low cost; gifts of new or existing
policies may also provide tax benefits. A gift of
life insurance may be especially attractive for a
young person due to the lower premium expense. For
example, the children may be grown, there may be
no mortgage remaining on the family home, or a spouse
may have other assets for support. In these situations,
donating an existing policy may be a wonderful way
to support Backstreet Missions.
Income
Producing Gift Options
Some planned gift opportunities
can greatly assist the mission in meeting its needs
and objectives while also producing an income for
you or your loved ones. There are many tax benefits
with these powerful planning tools.
A. Charitable Remainder
Trust
A charitable remainder
trust provides income to you or named beneficiaries
during life. Payout rates are negotiated with the
board of directors. After the death of named beneficiaries,
the trust assets are transferred to the mission and
are used for the purpose you designate.
Charitable Remainder Unitrust
- provides variable payments to the life income beneficiary
or beneficiaries. The annual payments are based upon
a percentage (at least 5 percent) of the annually
predetermined fair market value of the assets in
the trust.
Charitable Remainder Annuity
Trust - provides the named beneficiary or beneficiaries
with a fixed specified sum each year that cannot
be less than 5 percent of the initial value of the
gift placed in the trust.
B. Charitable Gift
Annuity
A charitable gift annuity
is a simple contractual arrangement between you and
Backstreet Missions. A gift annuity provides a guaranteed
fixed sum each year for the life of the beneficiary
or beneficiaries. The payout rate is negotiated with
the board of directors and is based on such factors
as the age of the beneficiary(ies) and the value
of the asset used to purchase the annuity. A charitable
gift annuity offers many tax benefits, and part of
each year's annuity payment is treated as tax free
income.
Charitable
Lead Trust
Charitable lead trusts
allow you to contribute assets to a trust for a specified
period of time. With this trust arrangement, Backstreet
Missions receives income in support of the mission
from the trust as a gift. The assets are later returned
to you or your heirs when the trust terminates. The
main advantage in creating a lead trust is to reduce
federal estate taxes when transferring property to
heirs.
Retained
Life Estate (Real Estate)
A special provision in
the federal tax law allows you to give a personal
residence (including a vacation home) or farm to
Backstreet Missions and still retain the full use
and enjoyment of the property. You would continue
to be responsible for the property's maintenance,
insurance, and taxes. This retained right to use
and live on the property can be for your lifetime
or for the lifetime of you and another person. Substantial
income tax and federal estate tax benefits may be
realized with this type of planned gift.
Retirement
Plan and IRA Designations
Many individuals have
amassed large sums of money in their retirement plans
and their IRAs. The federal government's tax structure
places a heavy tax burden on these assets at the
time of one's death, especially if you wish to pass
these assets to your children. If you name your children
as beneficiaries of your qualified retirement plan
or IRA, substantial income and estate taxes may be
assessed. The total combined tax burden can exceed
80%. In other words, your family would receive only
20% of the retirement plan or IRA. The solution has
often been to name a charitable remainder trust as
the beneficiary of your retirement plan or IRA. Your
children can receive income from the charitable remainder
trust and significant taxes can be avoided. This
gift vehicle can leave your estate in much better
financial position.
... and you can
give your time.
Please contact Linda Kelley at the office
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